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Rollovers-legal or not?

Date: Fri, 11/20/2009 - 22:00

Submitted by www.agiftfromabove
on Fri, 11/20/2009 - 22:00

Posts: 3 Credits: [Donate]

Total Replies: 6


Federal Law-Paydayloan Reform Act of 2009 states that rollovers are not legal, if this is correct then why are payday loan companies still offering rollovers by extending the loan by paying the fee only?


Where can I check to see if CSO rollovers are legal in MD? I have this loan with Cash Plus USA since sept 2008 and I keep rolling it over every 2 weeks. The loan was for 350 and so far I paid more than 1500$ on it.
CSO's are legal in MD but there must be something not right about rolling over for more than a year. Other CSO's make u extend the loan 4 times and the 5th you have to pay everything in full.
Where can I check what is legal or not?


lrhall41

Submitted by on Sat, 11/21/2009 - 09:32

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Thank you for the link. I've been searching for over 3 hours and I still can't find nothing regulating the rollovers.
I still can't find nothing on CSO Act. There is a CSO act for Texas for example but in Maryland's law I cannot find nothing on CSOs.
Cash Plus CSO, Inc. is licensed as a consumer loan corporation.
I found something very intereesting though:
"Transactions made in another state.- This section does not apply to a loan transaction validly made in another state in compliance with a similar loan law of that state. However, a lender may not collect an amount that is more than the total amount that would be permitted if this subtitle were applicable. This section applies to all loans made by a lender domiciled in another state to a borrower who is a resident of this State if the application for the loan originated in this State. "
Correct me if I'm wrong but this would be the answer for all the PDLs who say are licensed in Malta for example and the law of the Malta prevails, right?


lrhall41

Submitted by on Sat, 11/21/2009 - 15:52

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Quote:

Originally Posted by Anonymous
Thank you for the link. I've been searching for over 3 hours and I still can't find nothing regulating the rollovers.
I still can't find nothing on CSO Act. There is a CSO act for Texas for example but in Maryland's law I cannot find nothing on CSOs.
Cash Plus CSO, Inc. is licensed as a consumer loan corporation.
I found something very intereesting though:
"Transactions made in another state.- This section does not apply to a loan transaction validly made in another state in compliance with a similar loan law of that state. However, a lender may not collect an amount that is more than the total amount that would be permitted if this subtitle were applicable. This section applies to all loans made by a lender domiciled in another state to a borrower who is a resident of this State if the application for the loan originated in this State. "
Correct me if I'm wrong but this would be the answer for all the PDLs who say are licensed in Malta for example and the law of the Malta prevails, right?


the last part is excatly right,but they can claim that all they want.what are they gonna do?extradite you to malta? i hardly think so.get the complaints out.the more the FTC gets,the sooner they act against these places.


lrhall41

Submitted by paulmergel on Sat, 11/21/2009 - 15:57

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If you have questions on the CSO's if you live in Maryland, you might also want to check w/ the MD Dept. of Financial Regulation (contact info w/ MD PDL laws on this site); they could probably give you some advice on how to deal with the CSO. (and don't worry, you won't have members of the Malta police force showing up on your doorstep; the illegal PDL's say just about anything to put people in a state of fear)


lrhall41

Submitted by on Mon, 11/23/2009 - 04:52

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